Mktg 351 Ch. 15 Vocab

reorder point =

(order lead time * usage rate) +safety stock

channel members are independent, but a high level of inter organizational management is achieved through informal coordination

administered VMS

shipping that uses truck trailers and air carriers

birdyback

the dominant leader of a marketing channel or a supply channel

channel captain

the ability of one channel member to influence another member's goal achievement

channel power

piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through what?

containerization

the consolidation of many items into a single, large container that is sealed at its point of origin and opened at its destination

containerization

channel members are linked by legal agreements spelling out each member's rights and obligations

contractual VMS

combines all stages of the marketing channel, from producers to consumers, under a single owner

corporate VMS

the time needed to complete a process

cycle time

the decisions and activities that make products available to customers when and where they want to purchase them

distribution

large, centralized warehouses that focus on moving rather than storing goods

distribution centers

distribution of one manufacturer's product through two or more different channel structures

dual distribution

the use of two or more marketing channels to distribute the same products to the same target market

dual distribution

a computerized means of integrating order processing with production, inventory, accounting, and transportation

electronic data interchange (EDI)

a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers

exclusive dealing

using a single outlet in a fairly large geographic area to distribute a product

exclusive distribution

shipping that uses truck trailers and water carriers

fishyback

assembling, preparing, or otherwise refining the product to suit individual customer needs

form utility

organizations that consolidate shipments form several firms into efficient lot sizes

freight forwarders

combining organizations at t he same level of operation under one management

horizontal channel integration

an independent business organization that takes title to industrial products and carries inventories

industrial distributor

the number and kinds of outlets in which a product will be sold

intensity of coverage

using all available outlets to distribute a product

intensive distribution

two or more transportation modes used in combination

intermodal transportation

developing and maintaining adequate assortments of products to meet customers' needs

inventory management

an inventory-management approach in which supplies arrive just when needed for production or resale

just-in-time (JIT)

planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants

logistics management

a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

marketing channel

middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products

marketing intermediaries

physical handling of tangible goods, supplies, and resources

materials handling

freight transportation firms that provide several modes of shipment

megacarriers

the total set of managerial activities used by an organization to transform resource inputs into products, services, or both

operations management

the order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders

order handling

the three primary tasks of order processing:

order handling order entry order delivery

the average time lapse between placing the order and receiving it

order lead time

the receipt and transmission of sales order information

order processing

the contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel

outsourcing

activities used to move products from producers to consumers and other end users

physical distribution

shipping that uses both truck trailers and railway flatcars

piggyback

created by making products available in locations where customers wish to purchase them

place utility

the customer has access to the product to use or to store for future use

possession utility

company-operated facilities for storing and shipping products

private warehouses

Business Channel H

producer agents industrial distributors organizational buyers

Business Channel G

producer agents organizational buyers

Consumer Channel D

producer agents or brokers wholesalers retailers consumers

Consumer Channel A

producer consumers

Business Channel F

producer industrial distributors organizational buyers

Business Channel E

producer organizational buyers

Consumer Channel B

producer retailers consumers

Consumer Channel C

producer wholesalers retailers consumers

storage space and related physical distribution facilities that can be leased by companies

public warehouses

the inventory level that signals the need to place a new order

reorder point

the amount of extra inventory a firm keeps to guard against stockout resulting from above-average usage rates and/or longer-than-expected lead time

safety stock

using only some available outlets in an area to distribute a product

selective distribution

shortages of products that can result in brand switching, lower sales, and loss of customers; when too few products are carried in inventory

stockouts

an agreement whereby the products of one organization are distributed through the marketing channels of another

strategic channel alliance

all the activities associated with the flow and transformation of products from raw materials through to the end customer

supply chain

the processes that enable the progress of value form raw material to final customer and back to redesign and final disposition

supply management

a set of approaches used to integrate the functions of operating management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and at the right time

supply-chain management

having products available when the customer wants them

time utility

the movement of products from where they are made to intermediaries and end users

transportation

an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well

tying agreement

one or more boxes are placed on a pallet or skid; these units can then be loaded efficiently by mechanical means

unit loading

the rate at which a products inventory is used or sold during a s specific time period

usage rate

combining two or more stages of the marketing channel under one management

vertical channel integration

a marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers

vertical marketing system (VMS)

the design and operation of facilities for storing and moving goods

warehousing